Monday, June 27, 2022

Advanced Micro Devices Inc. (NASDAQ:AMD) Recent Earnings Shows Major Promise

Many stocks have been testing new highs in 2020, and one of the most notable is Advanced Micro Devices Inc. (AMD). Currently, AMD is trading at $56.39 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $53.89.

To add more color to this target, the company’s high over the last year is $59.27 and the low is $27.43. Over the last 52 weeks, AMD is down -4.86% while the S&P 500 is down -0.75%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, AMD reported a profit of $818.0 million. Advanced Micro Devices Inc. also saw revenues increase to $1.79 billion. In addition, AMD has free cash flow of -$120.0 million as of 03-2020 The company’s EBITDA came in at $259.0 million which compares well with its peers.

AMD booked profit margins of 6.70%, its Return on Equity (ROE) is 19.60%, and its Return on Assets is 8.80%. All told, it is clear that, AMD needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. AMD has a short ratio of 0.84 and outstanding shares of 1.17B.

Company Outlook

AMD has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 49.24 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.41. Advanced Micro Devices Inc. AMD also noted assets of $5.86 billion at the end of the last quarter. Investors should also keep an eye on sector updates as AMD has historically followed its peers on positive news.

All told, Advanced Micro Devices Inc. AMD has strung together solid data and demonstrated underlying fundamentals. At its current valuation, AMD represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Advanced Micro Devices Inc. AMD is now commanding a market cap of 65.98B and a float of 1.16B. AMD is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of AMD stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in AMD, either long or short, and we have not been compensated for this article.

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